Indian companies preparing to buy gas from Angola: Talks continue at the government level, India is looking for new options due to the Hormuz crisis.

Due to shortage of gas in India, government oil and gas companies are now looking for supply options from new countries. In this series, Indian Oil Corporation, Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited and GAIL (India) Limited are in talks to buy LPG and natural gas (LNG) from the government company Sonangol of African country Angola. According to media reports, these companies are considering making long-term agreements (term contracts) with Angola’s government company Sonangol. However, the talks are still in the initial stages and discussions are also going on at the government-to-government level. This situation has arisen because the Strait of Hormuz has been closed due to the ongoing war in the Middle East. This route is considered very important for oil and gas supply in the world. Due to its closure, the supply of many countries including India has been affected. India is the world’s second largest LPG consumer. India is the world’s second largest LPG consumer and imports about 60% of its requirement. At the same time, about 50% of LNG is also imported. Till now, India has been getting most of the gas from Middle East countries, especially Qatar and UAE. But due to the closure of the Strait of Hormuz, about 90% of India’s LPG imports have been affected. For this reason, the government has tightened the rules for booking gas cylinders, giving priority to domestic consumers. Now cylinders can be booked only after an interval of 25 days in cities and 45 days in villages. Angola can supply LPG to India for the first time. Experts say that gas supply from Africa can reach India 10 to 15 days sooner than America. In such a situation, Angola can become a good option for India. If this agreement is signed, Angola will supply LPG to India for the first time. Indian companies are considering signing an agreement for about one year for LPG and at least 10 years for LNG. Angola has reserves of about 4.6 trillion cubic feet of natural gas and is already supplying crude oil and LNG to India. Angola was India’s fifth largest LNG supplier in FY2025. Preparation to buy LPG from Australia-Algeria and Russia also: India is exploring options to import gas not only from Angola but also from countries like Australia, Algeria and Russia, so that dependence on any one region can be reduced. This gas crisis can also affect industries like fertilizer and steel sectors. If this situation continues for a long time, gas prices may also increase and India may have to buy gas at expensive prices. The Petroleum Ministry has said that necessary steps are being taken to maintain the supply of gas and petroleum products in the country. Recently, two big ships have left for India carrying about 94 thousand metric tons of LPG. 92% of India’s LPG comes from 4 Gulf countries. Most of India’s LPG imports are from Persian Gulf countries UAE, Qatar, Saudi Arabia and Kuwait. The special thing is that the gas coming from all these countries passes through the same route, the Strait of Hormuz. It is only a 33 kilometer wide sea route, but about 20% of the world’s oil and gas trade takes place through here. In 2024-25, about 92% of India’s LPG imports will come from these four Gulf countries. Among these, UAE has emerged as the largest supplier, whose share has increased to more than 40%. At the same time, the share of Qatar and Saudi Arabia has declined. Demand for LPG increased in India but not production. Demand for LPG is increasing rapidly in India, but domestic production is almost not increasing. This is the reason why the country has to import a large part of its needs from abroad, due to which the risk regarding supply has also increased. According to government data, India imported 20.67 million tonnes of LPG in the year 2024-25, which is about 40% more than 14.81 million tonnes in 2019-20. That means there has been a huge increase in imports in just five years. India’s domestic production has remained almost stable. In 2019-20, the country produced 12.82 million tonnes of LPG, which came down to around 12.79 million tonnes in 2024-25. That means there was no significant increase in production. India used 31.32 million tonnes of LPG in 2024-25, which is about 19% more than 2019-20. This increase has happened due to increase in gas connections especially in rural areas. Under Pradhan Mantri Ujjwala Yojana, LPG connections have been given to crores of families. Now there are more than 33 crore active gas connections in the country, due to which the demand is continuously increasing.



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